1-1 By: Sibley S.B. No. 551
1-2 (In the Senate - Filed March 2, 1993; March 3, 1993, read
1-3 first time and referred to Committee on State Affairs;
1-4 March 8, 1993, reported favorably, as amended, by the following
1-5 vote: Yeas 12, Nays 0; March 8, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Harris of Dallas x
1-9 Rosson x
1-10 Carriker x
1-11 Henderson x
1-12 Leedom x
1-13 Lucio x
1-14 Luna x
1-15 Nelson x
1-16 Patterson x
1-17 Shelley x
1-18 Sibley x
1-19 West x
1-20 Whitmire x
1-21 COMMITTEE AMENDMENT NO. 1 By: Sibley
1-22 Amend S.B. No. 551 by deleting Section (1)(B) of Article
1-23 1.13, page 1, lines 45-48, and substituting the following:
1-24 (B) secured by a pledge of or represent an undivided
1-25 ownership interest in one or more financial assets, either fixed or
1-26 revolving, that by their terms convert into cash within a finite
1-27 time period plus any rights or other assets designed to assure the
1-28 servicing or timely distribution of proceeds or security holders;
1-29 and
1-30 A BILL TO BE ENTITLED
1-31 AN ACT
1-32 relating to excluding certain sums related to asset-backed
1-33 securities from the definition of interest.
1-34 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-35 SECTION 1. Subtitle 1, Title 79, Revised Statutes (Article
1-36 5069-1.01 et seq., Vernon's Texas Civil Statutes), is amended by
1-37 adding Article 1.13 to read as follows:
1-38 Art. 1.13. CERTAIN SUMS EXCLUDED FROM DEFINITION OF INTEREST
1-39 WITH RESPECT TO ASSET-BACKED SECURITIES. (a) In this article:
1-40 (1) "Asset-backed securities" means debt obligations
1-41 or certificates of beneficial ownership that are:
1-42 (A) part of a single issue or single series of
1-43 securities aggregating $1,000,000 or more issuable in one or more
1-44 classes;
1-45 (B) secured by a pledge of or represent an
1-46 undivided ownership interest in a pool of assets, including loans,
1-47 leases, insurance premiums, and credit card or other types of
1-48 receivables; and
1-49 (C) issued by a pass-through entity for a
1-50 business, commercial, agricultural, investment, or similar purpose.
1-51 (2) "Pass-through entity" means a corporation, limited
1-52 liability company, association, general partnership, registered
1-53 limited liability partnership, limited partnership or business,
1-54 grantor or common-law trust under state law, or segregated pool of
1-55 assets under federal tax law that, on the date of original issuance
1-56 of asset-backed securities, does not have significant assets other
1-57 than:
1-58 (A) assets pledged to or held for the benefit of
1-59 holders of the asset-backed securities; or
1-60 (B) assets pledged to or held for the benefit of
1-61 holders of other asset-backed securities issued on an earlier date.
1-62 (b) Notwithstanding Article 1.01 of this subtitle, for
1-63 purposes of this title the term "interest" excludes any sums paid
1-64 or passed through, obligated to be paid or to be passed through, or
1-65 not paid as a result of a discounted sale price to the holders of
1-66 asset-backed securities by a pass-through entity, in connection
1-67 with the original issuance or otherwise, regardless of the
1-68 denomination of the sums under the terms of the asset-backed
2-1 securities. Sums excluded from the definition of interest by this
2-2 article are not subject to Article 1.04 of this subtitle.
2-3 (c) This article does not affect or otherwise apply to
2-4 conventional interest, as defined by Article 1.01 of this subtitle,
2-5 paid, charged, or received on the assets pledged to or held for the
2-6 benefit of the holders of asset-backed securities.
2-7 SECTION 2. The importance of this legislation and the
2-8 crowded condition of the calendars in both houses create an
2-9 emergency and an imperative public necessity that the
2-10 constitutional rule requiring bills to be read on three several
2-11 days in each house be suspended, and this rule is hereby suspended,
2-12 and that this Act take effect and be in force from and after its
2-13 passage, and it is so enacted.
2-14 * * * * *
2-15 Austin,
2-16 Texas
2-17 March 8, 1993
2-18 Hon. Bob Bullock
2-19 President of the Senate
2-20 Sir:
2-21 We, your Committee on State Affairs to which was referred S.B. No.
2-22 551, have had the same under consideration, and I am instructed to
2-23 report it back to the Senate with the recommendation that it do
2-24 pass, as amended, and be printed.
2-25 Harris of
2-26 Dallas, Chairman
2-27 * * * * *
2-28 WITNESSES
2-29 FOR AGAINST ON
2-30 ___________________________________________________________________
2-31 Name: Chris Williston x
2-32 Representing: Ind Bankers Assoc of Tx
2-33 City: Austin
2-34 -------------------------------------------------------------------
2-35 Name: David Barbour x
2-36 Representing: Campstead Mortgage Corp
2-37 City: Dallas
2-38 -------------------------------------------------------------------
2-39 Name: Robert Bass x
2-40 Representing: Campstead Mortgage Corp
2-41 City: Austin
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